Multiple Choice
Suppose the local market for legal services has an upward sloping supply curve, PL = 150 + 0.0001QL where PL is the price of legal services and QL is the number of hours of legal services. If the equilibrium price of legal services is $250 per hour and the average number of hours that a lawyer works per year is 2,500, what is the average economic rent earned per lawyer in this market?
A) $10,000
B) $20,000
C) $50,000
D) $1,000,000
Correct Answer:
Verified
Correct Answer:
Verified
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